Swansea-based Marine Power Systems has secured part of a £31m UK Government fund to develop floating offshore wind projects.
The energy technology firm has received £3.4m from the Westminster government's floating offshore wind demonstration programme.
The funding which will allow it to construct a floating wind turbine foundation with a small footprint and integrated wave energy generator to improve power quality.
Mechanical contractor Ledwood in Pembroke Dock is also part of a joint project that has received more than £3.2m for developing a trimaran mounting system for wind turbines.
The projects aim to drive plans to place turbines in deep-sea areas, including where winds are at their strongest.
Last year Marine Power Systems, which aims to revolutionise the way we harvest energy from the world’s oceans, received a total of £1.7m in equity from a syndicate of Welsh investment angels, private investors, and the Development Bank of Wales.
The company is on track to be a world leader in the supply of floating wind and wave energy extraction hardware by having the highest performance and most cost-effective technology available in the market.
Following successful medium scale testing of their full patent protected marine energy generation technology, the company has been working at megawatt scale to demonstrate its grid connected technology ahead of commercialisation.
There is already great potential for more floating offshore wind energy in the Celtic Sea which has a combination of deep waters and strong winds.
South Wales, the south west of England and southern Ireland form a natural cluster which could also offer potential economic opportunities.
But issues surrounding infrastructure and supply chain capabilities need to be addressed through short to medium-term programmes and co-operation between developers, supply chain and Governments before there can be commercial scale projects in the Celtic Sea and elsewhere in the UK.
The £31m funding is part of a £1bn net zero innovation portfolio which aims to accelerate the commercialisation of innovative low-carbon technologies and reduce Britain’s reliance on fossil fuels and exposure to volatility in global wholesale energy prices.
Energy, Clean Growth and Climate Change Minister Greg Hands said: “We are already a world leader in offshore wind and floating technology is key to unlocking the full potential of our coastlines.
“Deep waters around Wales’s coastline offer huge potential for deploying this key technology and these innovative Welsh projects will help us expand renewable energy further and faster.”
Secretary of State for Wales Simon Hart said: “This is fantastic news for businesses in Wales who are working in this expanding sector. The investment from the UK Government will enable them to go further and get there faster, ensuring Wales is at the forefront of floating offshore wind."
He added: “This is exactly the growth that I want to see in Wales – creating highly skilled and well-paid jobs in green technology – helping us reach our net zero target whilst also benefitting our economy.”
The announcement follows the UK Government’s published budget for the 4th allocation round of its ‘Contracts for Difference’ programme - which ringfences £24m of support for FOW projects between FYs 2025/6 and 2028/9.
In October, Boris Johnson announced £160m funding to develop and build new large-scale floating offshore wind ports and factories in the UK.
